Real estate financial hardships could lead to homeowners facing foreclosures or having to settle for a short sale. As a qualified professional, you can help your clients get the best deal through this process.
Whether a homeowner is unable to get refinancing to reduce the monthly mortgage or negotiate for a loan modification with the lender, selling the house through a short sale is an ideal option. A short sale is when the house is sold for an amount that is less than what is due on the mortgage. This type of real estate sale helps the lender avoid the foreclosure process which can be costly, and the borrower reduces the mortgage debt.
The lender approves a short sale if the borrower has an emergency hardship such as a divorce or health problems and also if the mortgage owed is more than what the home is worth. The steps for the process involve a short sale package which is the borrower’s financial records and letters describing the hardship. If the borrower gets an offer from and interested buyer and accepts it, the real estate agent sends the lender the purchase offer, pre-approval letter from the buyer, listing agreement and the money check. The last step involves the bank reviewing the offer and either agreeing to it or denying it.
For sellers, a short sale is more beneficial to a foreclosure as it does not do a lot of damage to the credit report. The process should be started as soon as possible and the real estate agent can help determine the property’s value, prepare the short sale package, list the property as a short sale, set a good price that will get the bank’s approval and bring offers and also negotiate with the bank for the purchase to go through. This enables the seller to have control of the sale and know who is buying their home.
On the other hand, buyers get a very good opportunity to acquire a home at a much reduced price. However, this real estate transaction can be very slow, time consuming and complicated. Many buyers make an offer only to withdraw it as it can take weeks and months to be approved. This is why getting a professional to negotiate with the bank or determine a better offer can help the buyer.
In the end, an experienced Real estate agent can be of great help to both the seller and the buyer in a variety of ways.